Flight Centre flags world factors to affect profits

Flight Centre flags world factors to affect profits

Flight Centre has reported it will miss its full-year profit forecast, despite record revenues, blaming a host of world factors including the Australian federal election and the Zika virus.

The travel group expects revenue to exceed $19 billion, but noted that uncertainty over the Brexit, Zika virus and the Australian election will push profit down.

Company shares in the travel group dropped more than seven percent after it said it still expects revenue for the year to June 30 to be above $19 billion.

Airfare price wars were also a factor in revising guidance for underlying profit before tax to between $348.0 million and $359.0 million – two to five percent down on 2015 and below its February forecast of $380 million to $395 million, Flight Centre said in a statement.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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